On September 10, 2019, a new bill was passed in the California Legislature of the United States, which would treat people who are contracted with ride-hailing services such as Uber and Lyft as “employees” rather than “contractors.” In response to the bill, the California Trucking Association sued California for “being deprived of the work of a sole proprietor’s trucker.” bill, Bill 5 (commonly known as AB5), regulates the “gig economy” that would order a single job over the Internet. The gig economy is based on the job of “brokering a platform such as Uber and Lyft to form an order or order for business.” In the past, contractors of this type of operation were treated as “contractors”, but in California after AB5, platform companies manage and control the contractor according to their work performance, or if the business content falls into the category of the company’s normal business, it is defined as “employee”.
gig economy workers were unable to enjoy minimum wage, paid leave, social security, health insurance, or other benefits that are legally covered by employees. After AB5 comes into force, gig economy workers will also be defined as employees, so you can benefit from these benefits. On the other hand, gig economy companies such as Uber are furiously opposed because of the cost of the bill. The California Truck Association claimed to have suffered a disadvantage against AB5 and even carried out the lawsuit. The California Trucking Association claimed that “truck drivers who were acting as sole proprietors will be treated as employees and suffer disadvantages” and accused California of “AB5 violating federal law.” According to the claim, more than 70,000 truck drivers must modify the truck to lower its displacement in order to comply with the company’s orders. You have to give up the free way of working, “I’ll set my own schedule and work.”
Sean Yadon, president of the California Truck Association, said: “Most truck drivers who work individually belong to the company. They chose to work independently of the company on their own. The new law deprives them of their freedom of choice.” According to a study by the Berkeley Labor Center at the University of California, AB5 applies to about two-thirds of sole proprietors, including truck drivers, taxi drivers, janitors and maids.